H&M billionaire quietly moves brand toward private ownership

Hennes & MAURITZ AB, the fast retail stores that have been included in the Swedish Securities Market since 1974, return towards private ownership.

The founding family has increased the purchases of H&M shares, as it has spent more than 63 billion kronor (6.6 billion dollars) since 2016 to form nearly two-thirds of speculation control, which may restore the company in Stockholm to private hands-despite the rejection of family members.

PersSons, one of the richest families of Sweden, has built an increasing stake through Ramsbury Invest Holding Company, saying a little about their intentions other than that they “believe” in H&M, which was founded in 1947 by Erling Prestson. The shy clan has now become an amazing distance of full control of the retail seller, which has lost in recent years among the shoppers to its main opponent Zara and “FLTRA FARGE FASHION” like Shein.

“This is something that we have been talking about for years, and there are no doubts that things are heading that things are heading,” said Linton’s ambassador, the chief legal employee and spokesperson for the Swedish shareholder Association, who represents young investors in stock investors. He added that the family is not planning to take H&M Private, so you should transfer it more clearly and stop buying the shares.

The family has increased from the interior purchase by re -investing the profits, which increased the H&M share to nearly 64 % of 35.5 % over the past nine years via Ramsbury, a vehicle called the billionaire Stephen Perbreon, one of the largest private lands in southern England. Including the extended family holdings, PersSons is now controlling approximately 70 % of the capital and about 85 % of the voting rights, according to H&M.

In an interview last year with Bloomberg, H & M Karl-Johan Persson-the founder’s grandson-refused to talk about the family to take the private company. “There are no plans,” he said. “We just buy because we believe in the company.”

Actors at RAMSBRY Invest and H&M refused to comment.

Analysts including Niklas Ecukan at DNB Carnegie said that regular purchases can be more than just a confidence in the retailer. In a note of customers last month, it is estimated that if the family continues to obtain the shares at the same pace, the acquisition may come early from now. If the family’s ability reaches 90 %, you may ask for the perception of the arrows.

“It is based on the emotional motives, not financial,” he wrote, given that the family has already a controlling share and the company has long managed with little attention to minority shareholders.

He attributed the batch to Patriarch Stefan Pearson, 77, who built H&M to one of the largest retail traders in the world in 16 years as CEO and more than two decades as president. He is still a depth in the company’s future.

Stefan’s fortune reached $ 18.6 billion, most of which are in H&M shares, making him the richest person in Sweden, according to the Bloomberg Billionaires. He bought RAMSBURY, which has an area of ​​3,000 acres in 1997, and has since expanded it to 19,000 acres, and the construction of a factory factory factory factory factory and a chewing property.

His son Karl Johan, who held the position of H&M Board of Directors in 2020 after he held the position of CEO, plays an active role in Ramsbury Invest. He expressed his frustration in the interviews with the short -term focus of the stock market on increasing profits.

“They never crossed at least in the modern era, a strong desire to survive,” said Daniel Schmidt, an analyst at Dansky Bank. “I would like to say that transparency has always been part of it.”

H&M shares have reached the highest level ever about a decade ago, and since then it decreased by about 60 %, as the group has been evaluated by 220 billion kronor. On the contrary, the owner of Zara Inditex SA increased by about 60 % during that period.

For Persons, the price of flowing stocks is undoubtedly frustration, but it also represents an opportunity by making full control more realistic. At the current price, the family will cost at least 70 billion kronor to purchase the remaining shares due, according to Akman. This is likely to take the debts.

The deletion also requires a premium, according to Bloomberg Intelligence Charles ALEN.

“If the bid is funded by debt, it may reduce the flexibility of the company’s operation,” Allen said. “It will not be really important if the debt is in the company or the family, as the cash flow from the investment must be diverted to payment and then payment.”

In operational aspect, the fast retail stores seem stuck in the slow corridor, as they face lukewarm demand for his clothes, fierce rivalry and American definitions now. The results of the first quarter were weaker than the analysts expected and showed that the efforts made for customer retreat through higher marketing spending did not reach a recovery.

CEO Daniel Erver, an old H & M warrior who held the higher position last January, participated in setting the current strategy and has not yet reflected market losses in countries including Germany, France and the United Kingdom. Attempts to reconnect with the younger fans through cooperation, as with the Pop XCX pop artist, did not significantly enhance growth.

“Since the stock price is currently as it is, as it provides a small installment today, it can be cheaper if the stock price is recovered at some point in the future,” said Lindgard Rosindal, a senior analyst at Dansky Bank. He said that the potential risk of capturing, especially is one of the reasons why Danske Bank has a “weight loss” classification on H&M, which is “a company that is also somewhat struggling with his constant operational transformation.”

As one of the most brutal stocks in Europe, it can force the sellers acquisition to relax on their negative bets on H&M and send high stocks. The shares on loan, an indication of a short benefit, were 21 % of the H&M free float as of June 4, according to the S&P Global Market Intelligence.

H&M was criticized due to the lack of transparency on the sudden administrative changes and that it is the only company in the Stockholm Standard Index for not disclosing the shares of its executive team.

“It is clear that you are a listed company that puts the administration at more audit than if it is private, but it is also supposed to provide some incentives to the administration and other employees who will not be available if it is private,” said Allen from BI.

Anders Oscarson, the head of the AMF stock, one of the largest pension managers in Sweden and the largest non -family shareholder, said he had not heard the family who says anything about taking H&M Private, and that this step will be a great loss for investors.

“It would be sad that the company will disappear from the stock exchange,” he said. “If we generate returns from the stock market, we need strong listed companies.”

However, if family purchases have a noticeable deterioration in the liquidity of the arrow, it will not be a good result as well. “It may become somewhat similar to the California Hotel – where you cannot check or check.”

This story was originally shown on Fortune.com

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2025-06-09 09:25:00